Trip.com (TCOM) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings ...

Market Overview - U.S. stock markets have continued to rise in 2025, with the Dow and S&P 500 gaining 0.3% and 0.1% in November, while the Nasdaq Composite fell by 1.5% [1][2] - Year-to-date performance shows the Dow, S&P 500, and Nasdaq Composite up by 12.6%, 16.7%, and 21.2%, respectively, with expectations of continued growth in December due to a potential interest rate cut by the Fed [3] Investment Opportunities - Recommended stocks for December include Expedia Group Inc. (EXPE), The Allstate Corp. (ALL), Dillard's Inc. (DDS), Kinross Gold Corp. (KGC), and Globus Medical Inc. (GMED), all carrying a Zacks Rank 1 (Strong Buy) and a Zacks Momentum Score of A [4][9] Company Highlights Expedia Group Inc. (EXPE) - Benefits from a strong platform model that enhances customer insights and revenue growth, with an expected revenue growth rate of 6.3% and earnings growth rate of 20.8% for next year [7][8] - Strong liquidity, share buybacks, and dividends highlight financial resilience [8] The Allstate Corp. (ALL) - Consistent growth in premiums with a 7.6% year-over-year increase in net premiums earned in the first nine months of 2025 [10][11] - Expected revenue growth rate of 5.7% and a decline in earnings by 14.5% for next year, with share repurchases totaling $805 million in the first nine months of 2025 [12][11] Dillard's Inc. (DDS) - Capturing growth in both brick-and-mortar and e-commerce, with a 1% year-over-year increase in retail sales [13][14] - Expected revenue growth rate of 0.8% and a decline in earnings by 8.2% for next year [16] Kinross Gold Corp. (KGC) - Strong production profile with a focus on organic growth through projects like the Tasiast mine, which has boosted production capacity [17][18] - Expected revenue growth rate of 6.3% and earnings growth rate of 32% for next year [19] Globus Medical Inc. (GMED) - Strengthened position in the musculoskeletal space through acquisitions, with a focus on expanding product offerings [20][21] - Expected revenue growth rate of 7.2% and earnings growth rate of 11.3% for next year [22]

Core Insights - Booking Holdings Inc. (NASDAQ:BKNG) is recognized as one of the best consumer cyclical stocks, providing travel services through various platforms and managing over four million properties [1] - As of November 28th, 23 out of 39 analysts rated Booking Holdings Inc. as a Buy, with an average share price target of $6,207.21 [2] - Bank of America upgraded Booking Holdings Inc. to Buy from Neutral, maintaining a $6,000 price target, citing that concerns over AI competition were overstated [2] Analyst Recommendations - 23 out of 39 analysts recommend Booking Holdings Inc. as a Buy, with 5 Strong Buy and 11 Hold ratings [2] - The average price target for Booking Holdings Inc. is set at $6,207.21 [2] Market Position and Performance - Booking Holdings Inc. benefits from strong relationships with hospitality firms, allowing it to retain users and offer better deals compared to AI platforms [2] - Key performance metrics include better deals, margins, and revenue per available room, which are critical for the company's success [3] Earnings Insights - During the latest earnings call, management noted that traditional search traffic is still growing year-over-year, despite concerns about AI platforms [3] - The CFO highlighted that while leads from large language models are currently small, they are on the rise, indicating a potential hybrid future between traditional search and AI [3] - Early signals show improvements in search speed, conversion rates, cancellation rates, and customer satisfaction [3]

Core Viewpoint - Carnival Corporation (NYSE: CCL) is considered an affordable blue chip stock with strong growth potential, supported by strategic initiatives and disciplined capacity expansion [1][2][4]. Group 1: Analyst Ratings and Price Targets - UBS analyst Robin M. Farley reaffirmed a Buy rating on Carnival Corporation with a price target of $35, citing a deliberate 7% capacity growth in the Caribbean, which is below the industry average of 12% [1]. - Wells Fargo initiated coverage with an Overweight rating and a $37 price target, expressing confidence in the company's prospects as it approaches investment grade amid EBITDA growth [3]. - Bank of America analyst Andrew Didora reiterated a Buy rating on November 10 with a price target of $38, aligning with the positive sentiment around the stock [5]. Group 2: Financial Recovery and Growth Potential - Carnival Corporation is undergoing financial recovery post-pandemic, focusing on debt reduction and cost-cutting initiatives, which are expected to enhance its positive outlook [4]. - Despite anticipated near-term yield pressures from accounting adjustments and drydock expenses, the long-term growth potential remains strong, bolstered by strategic initiatives like the Celebration Key development [2]. - The company is positioned to drive return on invested capital (ROIC) with limited capacity growth, which is expected to lead to strong pricing growth in the coming years [5]. Group 3: Company Overview - Carnival Corporation & plc operates a diverse portfolio of cruise line brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, and Costa Cruises, providing cruise packages and related travel services [6].

Core Insights - Trip.com reported quarterly earnings of $3.87 per share, significantly exceeding the Zacks Consensus Estimate of $1.15 per share, representing an earnings surprise of +236.52% [1] - The company generated revenues of $2.58 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.41% and showing an increase from $2.26 billion year-over-year [2] - Trip.com has outperformed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] Financial Performance - The earnings for the previous year were $1.25 per share, highlighting substantial growth in profitability [1] - The company has consistently exceeded revenue estimates, achieving this three times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.76, with projected revenues of $2.02 billion, while the estimate for the current fiscal year is $3.69 on $8.56 billion in revenues [7] Market Position - Trip.com shares have increased by approximately 4.9% since the beginning of the year, underperforming compared to the S&P 500's gain of 14.5% [3] - The Zacks Rank for Trip.com is currently 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] - The Leisure and Recreation Services industry, to which Trip.com belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Core Insights - United Parks & Resorts reported quarterly earnings of $1.61 per share, missing the Zacks Consensus Estimate of $2.24 per share, and down from $2.08 per share a year ago, representing an earnings surprise of -28.13% [1] - The company posted revenues of $511.85 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.11% and down from $545.9 million year-over-year [2] - The stock has underperformed the market, losing about 17.7% since the beginning of the year compared to the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.71 on revenues of $387.2 million, and for the current fiscal year, it is $4.04 on revenues of $1.7 billion [7] - The estimate revisions trend for United Parks & Resorts was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Leisure and Recreation Services industry, to which United Parks & Resorts belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Core Insights - Marriott Vacations Worldwide reported quarterly earnings of $1.69 per share, exceeding the Zacks Consensus Estimate of $1.64 per share, but down from $1.80 per share a year ago, indicating an earnings surprise of +3.05% [1] - The company generated revenues of $1.26 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.2% and down from $1.31 billion year-over-year [2] - The stock has underperformed, losing approximately 26.2% since the beginning of the year, while the S&P 500 has gained 15.1% [3] Earnings Performance - Over the last four quarters, Marriott Vacations Worldwide has surpassed consensus EPS estimates four times [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $1.72 on revenues of $1.35 billion, and for the current fiscal year, it is $6.75 on revenues of $5.12 billion [7] Market Outlook - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] - The estimate revisions trend for the company was unfavorable ahead of the earnings release, which may impact future stock movements [5][6] - The Leisure and Recreation Services industry, to which the company belongs, is currently in the top 31% of Zacks industries, suggesting a favorable industry outlook [8]

Core Insights - JetBlue Airways reported a quarterly loss of $0.4 per share, which was better than the Zacks Consensus Estimate of a loss of $0.43, representing an earnings surprise of +6.98% [1] - The company posted revenues of $2.32 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.12% and down from $2.37 billion a year ago [2] - JetBlue shares have declined approximately 40% year-to-date, contrasting with the S&P 500's gain of 16.9% [3] Financial Performance - Over the last four quarters, JetBlue has surpassed consensus EPS estimates four times and topped revenue estimates twice [2] - The current consensus EPS estimate for the upcoming quarter is -$0.37 on revenues of $2.26 billion, and for the current fiscal year, it is -$1.60 on revenues of $9.08 billion [7] Market Outlook - The sustainability of JetBlue's stock price movement will largely depend on management's commentary during the earnings call [3] - The Zacks Rank for JetBlue is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] - The Transportation - Airline industry is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Market Overview - The S&P 600 Small Cap Index has increased by 2.0% year-to-date, with a notable return of 5.8% since July, indicating a positive trend for small-cap stocks [1] - Global economic indicators are currently favorable for small-cap stocks, contributing to their upward trajectory [1] Currency and International Dynamics - The weakening U.S. dollar and rising global yields are driving gains in international equities, leading investors to favor international small caps due to a wide valuation gap [2] - Small caps are seen as offering significant upside potential in both valuation and diversification [2] Federal Reserve Influence - The Federal Reserve's plan to cut interest rates is viewed positively for small-cap stocks, as historically, falling interest rates have benefited these stocks more than large-cap stocks [4] - From 1966 to 2023, the S&P 500 returned 16.4% during periods of rate cuts compared to only 6.2% during rate hikes, highlighting the favorable conditions for small-cap stocks in a declining rate environment [4] Small-Cap Stock Recommendations - **Aehr Test Systems**: Year-to-date performance of 55.7%, positioned well in the semiconductor sector with strong momentum in AI and semiconductor testing [6] - **Travelzoo**: Year-to-date performance of -49.7%, seen as undervalued with healthy cash flow and potential for recovery as consumer travel increases [8][9] - **Jazz Pharmaceuticals**: Year-to-date performance of -9.8%, recently received FDA approval for a new cancer treatment and has a promising pipeline with strong analyst support [10][11][12] Investment Strategy - First-time investors in small-cap stocks should exercise caution, using limit orders and diversifying their portfolios to mitigate risks [13] - A long-term investment horizon of at least three years is recommended, as small caps can experience significant annual drawdowns [13] - Maintaining discipline in investment strategies, such as rebalancing and avoiding chasing momentum, is crucial for success in small-cap investing [14]

Company Performance - Allegiant Travel reported quarterly earnings of $1.23 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, but down from $1.77 per share a year ago, representing an earnings surprise of +48.19% [1] - The company posted revenues of $689.38 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.29%, compared to $666.28 million in the same quarter last year [2] - Over the last four quarters, Allegiant Travel has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Allegiant Travel shares have declined approximately 48.9% since the beginning of the year, while the S&P 500 has gained 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is -$1.62 on revenues of $599.03 million, and for the current fiscal year, it is $2.70 on revenues of $2.67 billion [7] - The estimate revisions trend for Allegiant Travel was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Transportation - Airline industry, to which Allegiant Travel belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]